The American Family in the 21st Century

Ward and June Cleaver used to represent the typical American
household. Today, marketers would be remiss in not incorporating
the likes of Murphy Brown, Ally McBeal, and Will and Grace into
their business plans.

Census 2000 data shows that while the traditional family â€”
two parents with kids â€” still represents a lucrative market,
so do the new types of households: single parents, singles and
non-relatives living together. Small, yet consequential, shifts in
household composition are taking shape today, which represent new,
fast-growing and profitable markets for businesses.

There are now 105 million U.S. households â€” 14 million
more than a decade ago. But it's not just the number of additional
households that should be of interest to marketers. The more
important change is in the way people are living.

The Census Bureau categorizes households into two types: family
and non-family. The total share of family households â€”
defined as married couples, single parents and people who live with
other relatives â€” has declined to 68 percent in 2000 from 70
percent in 1990. Meanwhile, the share of nonfamily households
â€” defined as those who live alone or with non-relatives
â€” has risen to 32 percent in 2000, from 30 percent in
1990.

While these percentage shifts may seem small, the sheer numbers
have significance for marketers. Consider this: a shift of 2
percentage points, to 32 percent, means that about 34 million
households today are considered non-family households â€” about
6 million more than in 1990. It's important for business to realize
that the shift in what is considered a â€œhouseholdâ€? is
creating a marketplace of exponentially expanding opportunity.

For example, there are more than 60 million households without
children living in them, a market that will only grow as Baby
Boomers continue to age. As the demographic forces of diversity and
age continue to play out on a national level, nowhere is the effect
more evident than in the home. The July 2 issue of
Forecast explores the American household at the start of
the 21st century.

Household Changes

Family households still outnumber
non-family households but grew at a slower rate in the past
decade.